Ted Baker founder Ray Kelvin considers backing buyout

Kelvin, who speaks for about a third of Ted Baker’s shares, has signalled that he would support a buyout under the existing management team, the Mail on Sunday reported.

Kelvin stepped aside in March after an investigation into a “forced hugging” controversy and was succeeded by longstanding lieutenant Lindsay Page.

The potential deal comes at a time of tough trading for fashion retailers, including Ted Baker. Its shares had fallen to £8.38 at the end of last week, meaning it could theoretically be bought for little more than £242m.

Industry sources said Kelvin would ask Page to help him run the business if he took it private.

Kelvin’s interest in a buyout was described as “discreet’” and it is not known whether he is acting on his interest or whether advisers have been brought on board.

Sources said the hugging row, which came to light through an online petition, might discourage some private equity firms.

However, a source told the newspaper: “Ted Baker is still a great brand and has proved resilient even in retail’s toughest times. The bottom line though is that Ray Kelvin is Ted Baker.

“Private equity firms will find a way to make that work even if Ray takes some arms-length or advisory role. But it would be very difficult while it remains listed on the stock exchange and everyone, including Ray and Lindsay, knows that taking it private is the only thing that makes sense now.”